Stocks falter amid weak retailer earnings and falling oil prices
Energy companies led stocks mostly lower Friday as the price of crude oil fell and several retailers reported disappointing quarterly results.
Utilities and consumer product stocks bucked the broader downward trend. The market was coming off a post-election rally that pushed the Dow Jones industrial average to a new high a day earlier.
The Dow dipped 11 points. The Standard & Poor’s 500 fell 0.4 percent, while the Nasdaq added 0.2 percent.
Investors are gauging the possible implications of policy changes that may come about when the Trump administration takes office in January, including tax cuts, infrastructure spending and deregulation. Traders have been pulling out of bonds, expecting Trump’s policies might spur inflation, leading to higher interest rates, both of which are bad for bonds. Higher yields on bonds also would draw investors away from high-dividend stocks such as utilities, phone companies and real estate companies.
In company news, J.C. Penney slid about 2 percent after third-quarter revenue fell short of financial analysts’ expectations.
Michael Kors fell after investors pored over the luxury retailer’s latest quarterly report card.
Nvidia surged after the maker of graphics processors for gaming and other applications posted better-than-expected quarterly results late Thursday.
Walt Disney rose as the company, which owns Marvel, Star Wars and its own Pixar and Disney Studios, said is forging ahead with new streaming deals involving Netflix, Hulu and others.
Overseas, Germany’s DAX was up 0.3 percent, while France’s CAC 40 was 0.9 percent lower. Britain’s FTSE 100 was down 1.5 percent. Earlier in Asia, Hong Kong’s Hang Seng index lost 1.4 percent, while South Korea’s Kospi fell 0.9 percent. Japan’s benchmark Nikkei 225 added 0.2 percent.
Benchmark U.S. crude was down $1.02, or 2.3 percent, to $43.65 a barrel in New York. Brent crude, used to price international oils, was down 97 cents, or 2.1 percent, to $44.86 a barrel in London.
The U.S. currency fell to 106.39 yen from 106.83 yen late Thursday. The euro slid to $1.0873 from $1.0890. The Mexican peso continued to drop, as investors worried about Trump’s promises to scrap trade deals and build a wall along the border. The dollar was up another 2.7 percent at 21.09 pesos, putting it up 22.1 percent this year. Bond trading was closed in observance of Veterans’ Day.